Building an home theater/gaming pc for the 1st time

So I've decided to take the plunge and to build a pc for the 1st time. Im a pretty tech savvy guy, and have done plenty of troubleshooting over the years, but haven't done more than install ram in the past. I want to build a mini itx home theater/gaming pc for my entertainment center. I've already decided on the cooler master 130 for the case, and I know I want a ssd for the OS (windows 8.1 pro) plus at least 2tb of storage for hd movies (I'll be running playon and PlayLater to record things online, haven't decided if I should use a raid setup or not). The system will be connected to my 60" hdtv through a yamaha av reciever for my surround sound system.
This is my tentative parts list, but I'm looking for feedback on parts choices, tips on the build, cost saving suggestions etc. should I go with an i5 or i7 processor, air cool or water cool etc.
[PCPartPicker part list](http://pcpartpicker.com/p/w9rYmG) / [Price breakdown by merchant](http://pcpartpicker.com/p/w9rYmG/by_merchant/)

Type|Item|Price
:----|:----|:----
**CPU** | [Intel Core i7-4770 3.4GHz Quad-Core Processor](http://pcpartpicker.com/part/intel-cpu-bx80646i74770) | $296.98 @ SuperBiiz
**Motherboard** | [ASRock Z87E-ITX Mini ITX LGA1150 Motherboard](http://pcpartpicker.com/part/asrock-motherboard-z87eitx) | $134.99 @ Newegg
**Memory** | [G.Skill Sniper Series 16GB (2 x 8GB) DDR3-1866 Memory](http://pcpartpicker.com/part/gskill-memory-f31866c9d16gsr) | $148.50 @ Newegg
**Storage** | [PNY XLR8 240GB 2.5" Solid State Drive](http://pcpartpicker.com/part/pny-internal-hard-drive-ssd9sc240gmdarb) | $99.99 @ Micro Center
**Storage** | [Seagate Barracuda 3TB 3.5" 7200RPM Internal Hard Drive](http://pcpartpicker.com/part/seagate-internal-hard-drive-st3000dm001) | $109.99 @ Newegg
**Video Card** | [Sapphire Radeon R9 270X 4GB Dual-X Video Card](http://pcpartpicker.com/part/sapphire-video-card-112170420g) | $198.99 @ SuperBiiz
**Case** | [Cooler Master Elite 130 Mini ITX Tower Case](http://pcpartpicker.com/part/cooler-master-case-rc130kkn1) | $49.99 @ Newegg
**Power Supply** | [EVGA SuperNOVA NEX 650W 80+ Gold Certified Fully-Modular ATX Power Supply](http://pcpartpicker.com/part/evga-power-supply-120g10650xr) | $64.99 @ NCIX US
**Optical Drive** | [Archgon CB-5021-GB Blu-Ray/DVD/CD Writer](http://pcpartpicker.com/part/archgon-optical-drive-cb5021gb) | $109.99 @ Amazon
| | **Total**
| Prices include shipping, taxes, and discounts when available | $1199.41